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A limited company is a private and separate legal entity to you as a person which can have multiple owners (also known as shareholders). This differs from the self-employed structure which recognizes you and your business as one entity.
This means that the company can own property, enter into contracts, and conduct business in its own name.
If the business was to ever incur any debt, you would not be personally held responsible.
You should consider becoming a limited company if you earn £50,000 per year or above as you’ll be able to take a salary from the business and also a share of the profit. These shares are known as dividends.